Greece Grapples With Oversupply Of Short-term Rentals And Geopolitical Instability Impacting Tourism

Published on August 7, 2025 |

By: TTW News Desk

Greece continues to look important challenges successful its tourism recovery, arsenic Athens struggles to drawback up pinch starring European destinations. Despite immoderate signs of stabilization, cardinal capacity indicators specified arsenic edifice occupancy rates, room prices, and gross per room still autumn down cities for illustration Madrid, Rome, and Barcelona. External factors specified arsenic geopolitical instability, a surplus of short-term rentals, and fluctuating request from cardinal markets person further hindered Athens’ expertise to compete effectively. While nan metropolis is making strides done municipality improvement projects, it remains to beryllium seen whether these efforts tin move nan tide and unafraid a stronger position successful nan European tourism landscape.

Athens continues to look challenges successful its tourism recovery, struggling to lucifer nan capacity of different salient European cities specified arsenic Madrid, Rome, and Barcelona. Key metrics for illustration edifice occupancy rates, room prices, and gross per room stay down these destinations, signaling that nan Greek superior still has a agelong measurement to spell earlier afloat recovering.

While location are signs that nan business successful Athens is stabilizing, edifice capacity during nan summer, particularly successful August, has been underwhelming. Travelers are opting for shorter stays, and nan city’s occupancy levels person yet to acquisition immoderate important improvement. In fact, erstwhile compared to Istanbul, Athens stands retired pinch a flimsy separator successful occupancy rates, but that is astir nan grade of nan city’s advantage.

Hotel Performance Falls Short successful Key Metrics

Recent figures from manufacture information item Athens’ struggle to adjacent nan capacity spread pinch different European cities. FIn June 2025, Athens knowledgeable a 2% diminution successful mean edifice occupancy, falling to 88.9% compared to 90.6% successful June 2024. The metropolis besides witnessed a diminution successful its Average Daily Rate (ADR), falling by 3.7% from €237.18 to €228.50. Moreover, Athens’ Revenue Per Available Room (RevPAR) knowledgeable a notable 5.5% decrease, dipping from €214.32 to €203.04.

While Athens showed a humble 3.2% summation successful RevPAR during nan first half of 2025, it still lags down different European cities that person posted amended results. Madrid, for example, reported a important 6.8% summation successful RevPAR, pinch Rome and Barcelona besides seeing gains. The only metropolis successful nan group that saw a alteration successful RevPAR was Istanbul, which faced akin challenges but still outperformed Athens successful cardinal metrics.

Room prices successful Athens followed a akin pattern. Madrid raised its rates by 6.6%, Rome by 3.5%, and Barcelona by 3.1%. In contrast, Athens saw a flimsy alteration successful its room prices, while Istanbul’s room rates dropped by 1.5%.

External Factors Impact Athens’ Tourism Recovery

A scope of outer factors has contributed to Athens’ tourism struggles. Geopolitical instability successful nan region has caused immoderate concerns for world visitors, while fluctuations successful tourism request from cardinal markets specified arsenic nan U.S. and Israel person added to nan uncertainty. Another rumor impacting Athens’ capacity is nan oversupply of short-term rental properties successful nan city. With much travelers opting for backstage rentals complete accepted edifice stays, nan request for edifice rooms has been negatively affected.

Despite these challenges, location are reasons to stay hopeful for Athens’ early tourism prospects. Experts constituent to nan city’s ongoing efforts to diversify and grow its tourism offerings. Significant investments are being made successful Athens’ coastal areas, pinch awesome municipality improvement projects underway. These investments purpose to heighten Athens’ entreaty arsenic a tourer destination, offering caller attractions and improved infrastructure that could fortify nan city’s competitiveness successful nan agelong run.

Modest Gains successful nan First Half of 2025

In nan first six months of 2025, Athens knowledgeable flimsy improvements successful its edifice performance, though these gains were not capable to put nan metropolis connected par pinch different top-tier European destinations. Hotel occupancy successful Athens roseate to 74.5%, marking a 1.3% summation compared to nan aforesaid play past year. This maturation was chiefly fueled by a robust capacity successful nan first quarter. The mean room value accrued to €169.96, marking a 1.9% rise. Furthermore, RevPAR knowledgeable a 3.2% boost, reaching €126.54 successful nan first half of nan year.

Despite these humble improvements, tourism professionals stay cautious. They statement that Athens needs a important alteration successful some request and spending trends successful bid to stay competitive. Without specified a shift, nan metropolis risks being near down arsenic travelers proceed to hunt for amended worth and much divers experiences elsewhere. Many manufacture experts judge that Athens must attraction connected attracting high-spending visitors, particularly arsenic much cities are investing successful tourism infrastructure and experiences.

The Road Ahead: Can Athens Recover?

As nan summertime play draws to a close, nan adjacent fewer months will beryllium important for Athens to find whether it tin adjacent nan spread successful its tourism capacity aliases stay sidelined successful Europe’s recovery. The metropolis is successful a reliable spot, arsenic title from different European destinations is fierce, and travelers now person much options than ever. However, Athens does person immoderate chopped advantages, including its rich | history, vibrant culture, and iconic landmarks, which stay important draws for galore visitors.

The city’s attraction connected coastal improvement and municipality revitalization projects whitethorn supply nan basal boost for semipermanent growth, but these efforts will return clip to output results. In nan short term, Athens will request to reside nan outer factors affecting its tourism industry, specified arsenic nan geopolitical business and nan oversupply of short-term rentals, successful bid to fortify its position successful nan highly competitory European tourism industry.

Greece is facing important hurdles successful its tourism recovery, arsenic Athens struggles pinch debased edifice occupancy, declining room prices, and title from awesome European cities. Factors for illustration geopolitical instability and an oversupply of short-term rentals person further hindered nan city’s growth.

In conclusion, Athens still has a agelong roadworthy up earlier it tin afloat retrieve and guidelines alongside apical European destinations. The adjacent fewer months will find whether nan metropolis tin successfully reside nan challenges it faces and move its fortunes around. If it does, Athens could yet regain its position arsenic 1 of Europe’s premier tourism hubs.